Disability Insurance Articles

Questions To Ask About Exceptions To Your Disability Insurance Policy

2011-02-01

Disability insurance can be a lifesaver for people who need it desperately. But before you sign on, do take the time to read the fine print properly. Get as many disability insurance quotes and compare the disability insurance rates properly to find out what you are missing on.

When you get individual disability insurance quotes and compare the disability insurance rates; you will notice a substantial difference in the company rates. The problem is slightly more complicated when you are already covered under a group company disability policy or a high limit disability policy. Individuals can then choose to buy more personal disability insurance that will protect them further. To ensure that you are getting the best, take the time to read the policy completely as there will be very strict rules regarding what is covered and what is excluded. Here are a few variables that come into play-

Pre-existing conditions. Before you get a policy, you have to warrant that you are in perfect health and not HIV-positive. Any pre-existing condition that was not disclosed at the time of the policy application may or may not result in a payout. A few companies also include any conditions that may arise in two years after signing the policy date.

Occupational conditions. If you have a company provided group disability insurance policy, it might not pay out for health problems incurred outside of the work place.

Waiting period. Different companies have different waiting periods. This means that the actual period of time you have to wait before your benefits kick in. The time period will vary but it will be clearly mentioned in the disability insurance quotes that you get. One rule of thumb is; the longer you wait, the lesser the disability insurance rates you have to pay.

Benefit period. The benefit period determines how long your insurance policy will pay your costs after the disability has been determined. Try to opt for a life benefit period but remember that this will raise your premium rates considerably.

Type of disability. A few policies will pay only for the job that you were doing when you got injured. That means if you can do another job with your disability, you might not get a large amount from the company. These policies are the best as they will pay the entire salary you would have got when you were working at your original job. But the actual nitty-gritty will vary from company to company.

Remember that you might be getting really affordable disability insurance rates because of several exclusions that might be vital to your own personal disability. Do everything you can to protect yourself by reading the fine print.